Back in February, a startup called Optifye received huge backlash over a demo video of its AI performance monitoring software.
The demo shows workers as color-coded rectangles on a dashboard: green for meeting targets, red for underperforming. When worker Number 17 shows up red, a supervisor accesses live surveillance of his workstation, asks “Hey number 17, what’s going on, man?” then dismisses the worker’s explanation, and uses performance charts to build a case against him. The message is clear: you are under constant surveillance, and you better meet your quota, or else.
Now, imagine you’re Number 17. Your week started green, but it’s edging close to red. You’re likely to push yourself to work when sick or exhausted, or deliver mediocre work just to keep your rectangle the same color. You might even consider manipulating the system to make it look like you’re doing more than you actually are.
Fear-driven metrics hurt everyone
The Optifye scenario might seem extreme, but many businesses unknowingly create a similar dynamic with traditional productivity metrics.
Take utilization: a seemingly objective measure of how much time employees spend on billable work. When tracked aggressively and tied to strict targets, it becomes another form of surveillance that drives fear-based behavior.
At our recent live session on utilization, Marcel Petitpas, CEO and Co-founder of Parakeeto, pointed out that a team under pressure is likely to make the numbers work by any means necessary. Looking busy rather than being effective becomes the new paradigm: “There’ll be no improvement in profitability, but the business will feel busier than it actually is… We won’t have accurate time-tracking data, so we won’t have clarity on how long it takes us to get things done.”
Redefining utilization
Metrics don’t have to induce fear: when used properly, they can motivate your team to thrive. Here’s how:
1. Start with the right questions
Before choosing a metric, define the questions your team is trying to answer. Petitpas commented that your end goal is to do right by all stakeholders in the business: ensuring that teams are busy (but not overworked), clients are getting what they need, and the business is healthy and profitable.
The metrics you choose need to help you measure this level of success.
2. Define what utilization means for YOU
Utilization indicates how much of a team’s total capacity for work is utilized—but there isn’t a single way to measure that ‘capacity’ in the first place. Some businesses calculate it by excluding time off, admin work, and sick leave. Others factor it all in.
Choose a definition that aligns with your team’s goals and work style—and answers the questions mentioned in the previous point.
3. Avoid relying on numbers alone
Quantitative data can only tell you what is happening, not why.
During the same live session, Nick Patterson, CEO of STORM+SHELTER, emphasizes the importance of real conversation: “I don’t think any tools can replace an actual conversation about how people are getting on [...] We need to understand how we’re spending our time and how we’re utilizing our teams to make sure that we’re not in a position where we’re under budgeting next time.”
Pro tip: when team members feel safe discussing their challenges, you get accurate data and better results. Have what Petitpas calls a “curiosity-based conversation,” one focused on understanding underlying issues, not punishing someone (unlike the infamous Optifye supervisor).
Looking at the bigger picture
Metrics help teams plan better, work smarter, and ask for help when needed. But utilization is just one piece of a much bigger puzzle.
The larger questions remain: how do we build workplaces that are both high-performing and human-centered? How do we create teams that thrive without relying on fear-driven metrics?
On March 25th, we’ll have some answers for you ↓
Save the date: March 25th
Join us next week as we explore these questions with Laurel Burton, CEO of Instrument, and Glenn Rogers, CEO of Float for a 45-minute conversation on building the workplace of tomorrow. They’ll cover:
- How to design remote-first and hybrid teams that actually work
- Why talent-dense teams with strong chemistry are your competitive advantage
- The role of technology in transforming work—without losing the human element
Disclaimer: this is an opinionated and informal live conversation—so if you expect two stiff cookie-cutter CEOs sitting in a boardroom and bland audience questions… you may be disappointed
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